IIMs will now Award MBA Degree instead of Diploma. The cabinet has approved the bill to grant autonomy the prestigious IIMs (Indian Institutes of Management) to run their all affairs and award degrees to their graduate students. Now the bill has to be approved by parliament, once the bill passed in the parliament, IIMs will be declared the `Institutions of National Importance'.

The cabinet has approved the bill in the absence of HRD minister Prakash Javadekar. An official source from HRD ministry said that the HRD minister Prakash Javadekar had a phone conversation with the Prime minister about the issue. However, a former cabinet secretary said, "I have never seen the subject of a ministry being taken up in the absence of the minister. The entire Cabinet should be briefed."

The Indian government’s role and responsibility in running the premier business institutes do away with the Indian Institutes of Management Bill, 2017. The power of running IITs will be distributed in 15-member boards at every IIM and the bill has no provision of reservation in faculty jobs. The bill stated that the recruitment policy should be inclusive. However, SC /ST/OBC reservation in admission at IIMs will be as per the previous norms. The bill has got approval after a long wrangle wrangling between the Prime Minister's Office and the HRD ministry on the bill's autonomy provisions.

After some time of the bill approval, the Prime Minister of India tweeted, "The IIM Bill focuses on complete autonomy, effective administration, more alumni participation and many other areas." Javadekar hailed the decision as a "historic one" which would give IIMs real autonomy and power to grant degrees. He also tweeted, "We trust excellence and quality”. The whole issue reflects the vision of the Indian government for higher education.

About the Indian Institutes of Management Bill 2017

According to the Indian Institutes of Management Bill, 2017, the role and responsibility will be vested in IIMs board which will be headed by a chairperson. The chairperson will be selected from the field of education industry science or technology. Every IIM board will also have a representative of the HRD ministry, 4 eminent persons, one of the state government, 4 alumni, 1 member from the IIM society, 2 faculty members and a director who will be an ex-officio member. Minimum 1 member of the IIM board will be from SC or ST category and at least 3 members of the board will be women. All member of the board will also have the authority to select the director of the board.